US Ports Pose Low Risk Despite Volume Swings
Stand-alone U.S. port ratings remain largely in the 'A' category despite volume fluctuations during economic downturns, according to a new Fitch Ratings report. 'Approximately 95% of port sector ratings currently have Stable Outlooks, demonstrating the relatively low credit risk and the resilience of port cash flows,' said Emma Griffith, Director in Fitch's Global Infrastructure Group. Fitch upgraded the rating on two ports during the past 12 months (Virginia Port Authority to 'A+' and Alabama State Port Authority to 'A-') as well as revised the Rating Outlook on one port to Positive (Hillsborough County Port District). Highest rated ports are typically those with a strong underlying market or franchise driving demand…
Transportation Outlook Stable, Declares Fitch
The 2014 outlook for airports, ports, and toll roads is stable despite tepid growth, according to a new Fitch Ratings report. 'The growing use of Public Private Partnership, or P3, transactions to construct new or expand existing projects is largely motivated by limited resources at the state and local level, combined with uncertainty on future federal funding levels,' said Scott Zuchorski, Director in the Global Infrastructure Group. The outlook for U.S. ports remains stable for 2014, with flat to modest improvements in port throughput and largely stable revenue profiles expected.
Fitch: U.S. Ports Remain a Low Credit Risk
U.S. ports continue to maintain strong investment grade ratings, according to a new Fitch Ratings report. Out of Fitch's rated ports, 69% are rated 'A' or above. Fitch conducted a peer review of its rated U.S. port portfolio and assessed five key rating drivers as being strong, midrange or weak. "The assessments in most categories were predominantly strong or midrange, which is consistent with the generally strong credit characteristics and investment-grade rating levels seen for most port credits in the U.S.," said Emma Griffith, Director in Fitch's Global Infrastructure Group. The full report, titled "Peer Review of U.S. Ports: Attribute Assessments, Metrics, and Ratings," is available on the Fitch Ratings web site at www.fitchratings.com.
